Risky Business Blog

Main contractor Carillion’s entry into liquidation has resulted in many employers seeking to establish relationships with subcontractors, under which they will be paid directly in order to stay on site and finish the relevant project. On the face of it, this seems like an attractive solution, and may leave some employers wondering why they didn’t procure their projects by construction management in the first place. However, establishing direct relations is not without risks, and requires safeguards for employers and subcontractors alike. Those are set out in the last section of this article, but it is important to understand the pitfalls, particularly of direct payment, first. Read about direct payment pitfalls >>>

Very few construction projects happen without subcontractors. Some general contractors self-perform all or a portion of the construction work, but, most often, major and minor trades contribute the lion’s share of labor and materials. Read the article >>>

The Aurora hospital has been a thorn in the VA’s side for years. The agency will miss the original completion date by four years, but the facility helped catalyze Congress’ decision to put the Army Corps of Engineers in charge of any VA construction project expected to cost $100 million or more. Read about it here >>>

A complicated calculation for determining workers compensation premiums has evolved into a do-or-die benchmark on whether contractors are qualified to bid on many jobs, and some say that’s not fair, especially for smaller contractors. It’s called the experience modification rate (EMR), and it’s based on previous workers’ comp claims versus payroll and other factors. The rate can lead to a reduction or increase in a company’s workers’ comp premiums. But over the years, the rate has come to mean much more in the construction industry, where the number has often become the final word on a construction company’s safety practices. Tell me more >>>

Five years in, the ambitious and ever-evolving headquarters expansion at Nike is finally producing the first completed buildings. It’s also left a trail of angry subcontractors. The strikingly modernistic structures taking shape on Nike’s campus near Beaverton have proved difficult and time-consuming to build. Subcontractors and their lawyers claim in court filings the company and its general contractor, Hoffman Construction, have repeatedly modified or broadened the scope of the project while refusing to cover the extra costs. That includes completed work that was ripped out and redone, they say. Get the story here >>>